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Example 1: Putting overpriced items on the menu first
Anchoring bias is a powerful effect that can help you sell, present or negotiate better if you know how to use it. Learn how from 12 examples of real-life uses of anchoring.
Article content:
Definition of anchoring bias
Anchoring examples in price perception
Anchoring examples to increase sales
Anchoring examples in meetings
Anchoring examples in estimating numbers
Anchoring examples in negotiations
Summary
Definition of anchoring bias
Anchoring bias is our tendency to rely on the first piece of information we encounter. Such information serves as an anchor, and we adjust our next decisions around that reference point.
Anchoring bias affects our daily decisions, including purchase decisions and the important decisions we make at work. An anchor can be basically anything our perception of price can be anchored by a number (even a random one), and we can use our previous decisions as a reference point for our subsequent choices.
Examples of anchoring in price perception
The most common use of anchoring in sales are discounts. You see it every day the original price serves as an anchor and the discounted one suddenly doesn’t seem that bad.
Take Serendipity 3 as an example. This restaurant in New York City created something no one had done before. Literally it made it to the Guinness Book of World Records. A $ 69 hot dog.
But they didn’t make it to sell it, no. Just think about it once you see that expensive hot dog on the menu, $ for a cheeseburger suddenly seems like a much more reasonable price, doesn’t it? And that’s exactly how anchors work. After introducing the hot dog, the sales of their cheeseburgers skyrocketed.
The Haute Dog of Serendipity 3, also known as decoy. Because of its ridiculous price, it makes the other items on the menu seem cheap in comparison. Source: Money.inc
Example 2: Changing the context to make the price seem lower
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